Question
E12-7 The following are comparative balance sheets for Mitch Company. Mitch Company Comparative Balance Sheets December 31 Assets 2017 2016 Cash $68,000 $22,000 Accounts Receivable
E12-7 The following are comparative balance sheets for Mitch Company.
Mitch Company Comparative Balance Sheets December 31
Assets 2017 2016
Cash $68,000 $22,000
Accounts Receivable $88,000 $76,000
Inventory $167,000 $189,000
Land $80,000 $100,000
Equipment $260,000 $200,000
Accumulated Depreciation of Equipment ($66,000) ($32,000)
Total $597,000 $555,000
Liability of Stockholders Equity
Accounts Payable $39,000 $43,000
Bonds Payable $150,000 $200,000
Common Stock ($1par) $216,000 $174,000
Retained Earnings $192,000 $138,000
Total $597,000 $555,000
Additional information:
Net income for 2017 was $93,000.
Depreciation expense was $34,000.
Cash dividends of $39,000 were declared and paid.
Bonds payable amounting to $50,000 were redeemed for cash $50,000.
Common stock was issued for $42,000 cash.
No equipment was sold during 2017.
Land was sold for its book value.
Instructions
Prepare a statement of cash flows for 2017 using the indirect method.
Identify phases of product life cycle.
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